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This is utter nonsense. It's complete idiocy to "improve the usability of naval units" in this way at the rules level. This is a BUG!! And bugs should be treated accordingly.
I believe that Red did not violate the rules, as it was not prohibited, and as everyone knows, what is not prohibited is allowed. And there's no need to appeal to conscience or anything like that; if it's not prohibited, it can be used.
The real question is, why wasn't this banned? (or unbanned?) I'm trying my best to understand, but I just can't!
All your face upgrades in Conflux, hit and wound, Red Rush, and even diplomacy and the Cloak of the Necromancer King – all pale in comparison to this blatant bug!
Or are we concerned about the "original spirit of the game"? Banning naval units in the text file on maps without water is something we simply can't do. It's not cool, it would impoverish the gameplay. But using such a malicious bug is perfectly normal!. It's in the spirit of the game, "well, it doesn't happen often. Why not, let's increase its usefulness."
facepalm.
But, for example, digging for the Grail from day one is a big no-no, it's overpowered.
In short, I have no words left besides profanities. Complete idiocy!